Economic Evaluation of Liquid Air Energy Storage (LAES) System

Liquid air energy storage (LAES) using gas liquefaction has attracted considerable attention because of its mature technology, high energy density, few geographical constraints, and long life span. On the other hand, LAES has not yet been commercialized and is being developed recently. Therefore, few studies have performed an economic analysis of LAES. In this study, the levelized cost of electricity was calculated and compared with that of other energy storage systems. As a result, the levelized cost of electricity of LAES was $371/㎿h. This is approximately $292/㎿h, $159/㎿h, $118/㎿h, and $3/㎿h less than that of the LiCd battery, VRFB battery, Lead-acid battery, and NaS battery. In addition, the cost was approximately $62/MWh and $195/㎿h more than that of Fe-Cr flow battery and PHS. Sensitivity analysis of the levelized cost of electricity according to the main economic factors was performed, and economic uncertainty analysis was performed through a Monte-Carlo simulation. The cumulative probability curve showed the levelized cost of electricity of LAES, reflecting price fluctuations in the air compressor cost, electricity cost, and standing reserve hourly fee.